Internet search portal Yahoo! Inc. late Tuesday reorganized its management and created new divisions to try to ease investor concerns that the company has overextended itself.
Meanwhile, COO Dan Rosensweig has agreed to leave the company at the end of March. His replacement has not been named.
Yahoo has titled its new units accordingly: the Audience Group, the Advertiser & Publisher Group and the Technology Group. They will take effect on Jan. 1. The company hopes it can play catch-up with rivals such as Google Inc. and social networking sites, and reassure investors of its place in the market.
The Audience Group will focus on developing networking opportunities for users; the Advertiser & Publisher Group will drive marketing efforts; and the Technology Group will work to find and use innovative platforms and applications.
"We're moving aggressively to deliver the most possible value to our key customers -- audiences, advertisers and publishers -- and seize the major new opportunities we see ahead for the Internet," said Terry Semel, Yahoo! chairman and CEO, in a news release. "The Internet is continuing to grow and evolve at a rapid pace, and we're reshaping Yahoo! to be a leader in this transformation, just as we did successfully five years ago.”
Analysts met the news with skepticism, according to numerous media reports. Many doubted the company’s ability to stay afloat with current management, and several called for Semel to step down.
Yahoo stock closed at $26.86 on Wednesday, down 2.08 percent.
Yahoo! Inc. www.yahoo.com
